{"id":152507,"date":"2019-07-31T10:45:11","date_gmt":"2019-07-31T14:45:11","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=152507"},"modified":"2019-07-31T07:52:37","modified_gmt":"2019-07-31T11:52:37","slug":"eurmxn-euro-mexican-peso-analysis-getting-ready-for-significant-data-and-events","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/07\/eurmxn-euro-mexican-peso-analysis-getting-ready-for-significant-data-and-events\/","title":{"rendered":"EURMXN Euro\/Mexican Peso Analysis: Getting ready for significant data and events"},"content":{"rendered":"
July 31, 2019<\/div>
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By IFCMarkets<\/a><\/strong><\/p>\n

Getting ready for significant data and events<\/strong><\/p>\n

US Fed and Bank of Mexico are going to cut rates. Will the EURMXN quotations <\/a> grow?<\/p><\/blockquote>\n

This movement occurs with the strengthening of the euro and the weakening of the Mexican peso. On July 31, 2019, the Fed meeting will take place, at which the rate is expected to decrease by 0.25% to 2.25%. Market participants believe that the US regulator will not stop at this and will continue easing monetary policy. The last time the Fed lowered the rate in November 2008, at the height of the global economic crisis. Recall that the current level of the American rate is 2.5% with an annual inflation of 2.1%. Its decline can weaken the dollar and strengthen the euro. The next meeting of the ECB will be held only on September 12, 2019. Eurozone GDP data for the 2nd quarter and preliminary inflation for July may affect the dynamics of the euro. They will be released July 31, 2019. On the same day, Mexico\u2019s GDP for the 2nd quarter will be published. The next meeting of the Bank of Mexico will be held on August 15. Theoretically, it can reduce the rate, which is 8.25% with inflation of only 3.95% in annual terms. Mexican President Andres Manuel Lopez Obrador said that the Bank of Mexico needs not only to control inflation, but also to accelerate GDP growth. In his opinion, low lending rates could support this process.<\/p>\n

\"EURMXN\"<\/p>\n

On the daily timeframe EURMXN: D1<\/b> rose to the resistance line of the downward trend. Various technical analysis indicators formed signals for improvement. Further growth of quotations is possible in case of positive macroeconomic news in the EU and negative – in Mexico.<\/p>\n